The design-build (DB) process is no longer a novelty. In the past ten years, contractors and engineers have fine-tuned the DB project delivery approach, utilizing it to build bigger and better structures at reduced costs.

As the demand for public infrastructure continues to increase and the funds to pay for public infrastructure continues to decrease, a “new” process is gaining momentum in the construction industry in the states (it’s been around for awhile outside of the US). We are starting to see more projects that add an “O” and “F” to the DB acronym.

The DBOF process involves a public-private partnership whereby the private entity designs, builds, operates, and finances a facility. In return, the public entity pays fees throughout the life of the project, often extending 30 years.

When done correctly, the DBOF process can be a win-win for all parties. However, public and private entities should be aware of the issues that can arise with these agreements. Among other things, these issues include the following:

1. Legal challenges related to the public entities ability to pursue such a project delivery approach under the law.
2. Potential opposition from unions.
3. Lack of competition in the bidding arena because only a few entities perform such work.
4. Risks related to the financial demise of the private company.
5. High transaction costs related to the complex nature of these arrangements.
 

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Photo of Tamara Boeck Tamara Boeck

Tamara Boeck routinely advises owners, developers and general contractors primarily in California, Idaho and Nevada.  Tami works with clients on a wide range of projects including commercial, residential and mixed-use projects, as well as construction-related aspects of oil and gas, mining, food processing…

Tamara Boeck routinely advises owners, developers and general contractors primarily in California, Idaho and Nevada.  Tami works with clients on a wide range of projects including commercial, residential and mixed-use projects, as well as construction-related aspects of oil and gas, mining, food processing, solar, wind, geothermal, biofuel, wastewater treatment and other industrial facilities.

In addition to counseling her clients on ways to avoid protracted litigation through thoughtful negotiations and effective contracts, she handles construction disputes from mediation through litigation or  arbitration, which often encompass significant business conflicts, project delay, workmanship and performance deficiency claims, as well as those matters involving lien laws, insurance coverage disagreements with insurers, claims involving toxic tort, product liability and catastrophic injuries. With  her depth of experience, she is able to assist and protect her clients in arbitration or trial when a pragmatic business resolution is not available. Tami has been listed in Best Lawyers in America© for Construction Law since 2010. She is immediate past chair of the firm’s Real Estate, Development & Construction group.

Click here for Tamara Boeck’s full bio.